What is the interest rate per annum at which the simple interest on 10000in four years is 2000

Answer 1

To find the interest rate per annum, we can use the formula for simple interest:

Simple Interest = (Principal * Rate * Time) / 100

Let's plug in the values we know:

2000 = (10000 * Rate * 4) / 100

We can cross multiply to solve for the rate:

2000 * 100 = 10000 * Rate * 4

200000 = 40000 * Rate

Rate = 200000 / 40000

Rate = 5

Therefore, the interest rate per annum at which the simple interest on $10000 in four years is $2000 is 5%.